Hexstone and Brendan O'Neil disclose 1.41M shares, warrants in LMFA

Rhea-AI Filing Summary

Hexstone Capital LLC and Brendan O'Neil report beneficial ownership of 1,410,790 shares of LM Funding America, Inc. That stake represents 9.3% of the company's common stock based on 15,198,388 shares outstanding after the issuer's August 18, 2025 offering. Hexstone directly holds the 1,410,790 shares and related warrants exercisable for up to 1,410,790 additional shares; warrant exercises are subject to the issuer's stockholder approval and therefore are excluded from the reported beneficial ownership. Mr. O'Neil is Hexstone's managing member and shares voting and dispositive power over the reported shares; he does not directly own the shares.

Positive

• Disclosure of a material stake: Hexstone reports a clear 9.3% beneficial ownership, exceeding 5% disclosure thresholds
• Transparency on warrants: The filing identifies warrants for 1,410,790 shares and explains exercises require stockholder approval
• Passive filing form: Filed on Schedule 13G indicating the position is represented as passive, not seeking control

Negative

• None.

Insights

Securities Analyst

TL;DR: A single investor group discloses a significant 9.3% passive stake and warrants tied to stockholder approval.

Hexstone's reported 1,410,790 shares equal a meaningful 9.3% ownership post-offering, which is above common 5% disclosure thresholds and therefore material to shareholders. The filing is on Schedule 13G, indicating the Reporting Persons characterize their position as passive and not intended to influence control. The existence of warrants exercisable for an additional 1,410,790 shares increases potential dilution but those exercises require stockholder approval and are excluded from present beneficial ownership. For investors, the filing signals concentrated ownership and potential future share issuance if warrants are approved.

Corporate Governance Expert

TL;DR: Reporting persons disclose shared voting and dispositive power; governance implications hinge on passive intent and warrant approval.

The Schedule 13G shows shared voting and dispositive power rather than sole control, and Item 10 includes a certification that the securities were not acquired to change or influence issuer control. The need for stockholder approval to exercise the warrants is a governance checkpoint that limits immediate dilution and voting change. Stakeholders should note the managing member relationship between Mr. O'Neil and Hexstone as the mechanism for exercising the reported rights.

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G

UNDER THE SECURITIES EXCHANGE ACT OF 1934

LM Funding America, Inc.

(Name of Issuer)

Common Stock, par value $0.001 per share

(Title of Class of Securities)

502074503

(CUSIP Number)

08/18/2025

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

Rule 13d-1(b)

Rule 13d-1(c)

Rule 13d-1(d)

SCHEDULE 13G

CUSIP No. 502074503

1

Names of Reporting Persons

Hexstone Capital LLC

2

Check the appropriate box if a member of a Group (see instructions)

(a)
(b)

3

Sec Use Only

4

Citizenship or Place of Organization

NEVADA

Number of Shares Beneficially Owned by Each Reporting Person With:

5	Sole Voting Power 0.00
6	Shared Voting Power 1,410,790.00
7	Sole Dispositive Power 0.00
8	Shared Dispositive Power 1,410,790.00

9

Aggregate Amount Beneficially Owned by Each Reporting Person

1,410,790.00

10

Check box if the aggregate amount in row (9) excludes certain shares (See Instructions)

11

Percent of class represented by amount in row (9)

9.3 %

12

Type of Reporting Person (See Instructions)

OO

Comment for Type of Reporting Person: As more fully described in Item 4 of this Statement on Schedule 13G (this ''Schedule 13G''), such shares and percentage are based on 15,198,388 shares of common stock, par value $0.001 per share, of the issuer (the ''Common Stock'') outstanding after giving effect to the issuer's offering (the ''Offering'') disclosed in the issuer's prospectus supplement, dated August 18, 2025, to the registration statement on Form S-3, as amended (File No. 333-281528), declared effective by the U.S. Securities and Exchange Commission on November 21, 2024 (the ''Prospectus Supplement''). Beneficial ownership excludes 1,410,790 shares of Common Stock issuable upon the exercise of certain common stock purchase warrants (collectively, the ''Warrants'') held directly by the reporting person and issued in a private placement offering consummated contemporaneously with the Offering, which exercises are subject to the approval of the issuer's stockholders (''Stockholder Approval'').

SCHEDULE 13G

CUSIP No. 502074503

1

Names of Reporting Persons

Brendan O'Neil

2

Check the appropriate box if a member of a Group (see instructions)

(a)
(b)

3

Sec Use Only

4

Citizenship or Place of Organization

UNITED STATES

Number of Shares Beneficially Owned by Each Reporting Person With:

5	Sole Voting Power 0.00
6	Shared Voting Power 1,410,790.00
7	Sole Dispositive Power 0.00
8	Shared Dispositive Power 1,410,790.00

9

Aggregate Amount Beneficially Owned by Each Reporting Person

1,410,790.00

10

Check box if the aggregate amount in row (9) excludes certain shares (See Instructions)

11

Percent of class represented by amount in row (9)

9.3 %

12

Type of Reporting Person (See Instructions)

IN

Comment for Type of Reporting Person: As more fully described in Item 4 of this Schedule 13G, such shares and percentage based on 15,198,388 shares Common Stock outstanding following the Offering disclosed in the Prospectus Supplement. Beneficial ownership excludes 1,410,790 shares of Common Stock issuable upon the exercise of the Warrants held indirectly by the reporting person and issued in a private placement offering consummated contemporaneously with the Offering, which exercises are subject to Stockholder Approval.

SCHEDULE 13G

Item 1.
(a)	Name of issuer: LM Funding America, Inc.
(b)	Address of issuer's principal executive offices: 1200 West Platt Street, Suite 100, Tampa, FL 33606
Item 2.
(a)	Name of person filing: (i) Hexstone Capital LLC, a Nevada limited liability company ("Hexstone"); and (ii) Brendan O'Neil ("Mr. O'Neil"). The foregoing persons are hereinafter collectively referred to as the "Reporting Persons". Any disclosures herein with respect to persons other than the Reporting Persons are made on information and belief after making inquiry to the appropriate party. The Reporting Persons have entered into a Joint Filing Agreement, a copy of which is filed as Exhibit 1 to this Schedule 13G, pursuant to which such Reporting Persons have agreed to file this Schedule 13G and all subsequent amendments to the Schedule 13G jointly in accordance with the provisions of Rule 13d-1(k) of the Act. The filing of this Schedule 13G should not be construed in and of itself as an admission by any Reporting Person as to beneficial ownership of the shares of Common Stock reported herein.
(b)	Address or principal business office or, if none, residence: The principal business address of each of the Reporting Persons is 3053 Fillmore St, Suite 303, San Francisco, CA 94123.
(c)	Citizenship: Hexstone is a limited liability company organized under the laws of the State of Nevada. Mr. O'Neil is a citizen of the United States.
(d)	Title of class of securities: Common Stock, par value $0.001 per share
(e)	CUSIP No.: 502074503
Item 3.	If this statement is filed pursuant to §§ 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:
(a)	Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o);
(b)	Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c);
(c)	Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c);
(d)	Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8);
(e)	An investment adviser in accordance with § 240.13d-1(b)(1)(ii)(E);
(f)	An employee benefit plan or endowment fund in accordance with § 240.13d-1(b)(1)(ii)(F);
(g)	A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);
(h)	A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);
(i)	A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);
(j)	A non-U.S. institution in accordance with § 240.13d-1(b)(1)(ii)(J). If filing as a non-U.S. institution in accordance with § 240.13d-1(b)(1)(ii)(J), please specify the type of institution:
(k)	Group, in accordance with Rule 240.13d-1(b)(1)(ii)(K).
Item 4.	Ownership
(a)	Amount beneficially owned: The information required by this item with respect to each Reporting Person is set forth in Rows 5 through 9 and 11 of the cover pages to this Schedule 13G and is incorporated herein by reference for each such Reporting Person. The share amounts and ownership percentages reported are based on 15,198,388 shares of Common Stock outstanding after giving effect to the Offering disclosed in the Prospectus Supplement. Hexstone holds (i) 1,410,790 shares of Common Stock and (ii) Warrants exercisable for up to 1,410,790 shares of Common Stock, which exercises are subject to Stockholder Approval, which has not yet been obtained as of the date of this Schedule 13G. As a result, the beneficial ownership shares and percentages reported for each of the Reporting Persons in this Schedule 13G excludes 1,410,790 shares of Common Stock issuable upon the exercise of the Warrants. Consequently, Hexstone is the beneficial owner of 1,410,790 shares of Common Stock (the "Shares"). Hexstone has the power to dispose of and the power to vote the Shares beneficially owned by it, which power may be exercised by its managing member, Mr. O'Neil. Mr. O'Neil does not directly own the Shares. By reason of the provisions of Rule 13d-3 of the Act, Mr. O'Neil may be deemed to beneficially own the Shares which are beneficially owned by Hexstone.
(b)	Percent of class: 9.3%
(c)	Number of shares as to which the person has:
	(i) Sole power to vote or to direct the vote: (A) Hexstone: 0.00 (B) Mr. O'Neil: 0.00
	(ii) Shared power to vote or to direct the vote: (A) Hexstone: 1,410,790.00 (B) Mr. O'Neil: 1,410,790.00
	(iii) Sole power to dispose or to direct the disposition of: (A) Hexstone: 0.00 (B) Mr. O'Neil: 0.00
	(iv) Shared power to dispose or to direct the disposition of: (A) Hexstone: 1,410,790.00 (B) Mr. O'Neil: 1,410,790.00
Item 5.	Ownership of 5 Percent or Less of a Class.
Item 6.	Ownership of more than 5 Percent on Behalf of Another Person.
	Not Applicable
Item 7.	Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company or Control Person.
	Not Applicable
Item 8.	Identification and Classification of Members of the Group.
	If a group has filed this schedule pursuant to §240.13d-1(b)(1)(ii)(K), so indicate under Item 3(k) and attach an exhibit stating the identity and Item 3 classification of each member of the group. If a group has filed this schedule pursuant to §240.13d-1(c) or §240.13d-1(d), attach an exhibit stating the identity of each member of the group. See Exhibit 1 filed herewith.
Item 9.	Notice of Dissolution of Group.
	Not Applicable

Item 10.

Certifications:

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Hexstone Capital LLC

Signature:	/s/ Hexstone Capital LLC
Name/Title:	Brendan O'Neil, Managing Member of Hexstone Capital LLC
Date:	08/20/2025

Brendan O'Neil

Signature:	/s/ Brendan O'Neil
Name/Title:	Brendan O'Neil
Date:	08/20/2025

Comments accompanying signature: See Exhibit 1 filed herewith.

FAQ

How many shares of LM Funding America (LMFA) does Hexstone report owning?

Hexstone reports beneficial ownership of 1,410,790 shares, representing 9.3% of common stock outstanding after the offering.

Does the filing mention any warrants related to the LMFA position?

Yes. Hexstone holds warrants exercisable for up to 1,410,790 additional shares, but those exercises are subject to stockholder approval and are excluded from current beneficial ownership.

What form was used to disclose the ownership and what does it imply?

The position was disclosed on Schedule 13G, which typically indicates a passive investor intent rather than a Section 13D active purchaser seeking control.

Who has voting and dispositive power over the reported LMFA shares?

Shared voting and shared dispositive power over the 1,410,790 shares is reported for both Hexstone and Brendan O'Neil; Mr. O'Neil is the managing member of Hexstone.

Are the warrants exercisable immediately into LMFA common stock?

No. The warrants' exercise is contingent on obtaining stockholder approval, so the issuable shares are excluded from current beneficial ownership.